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help me and solve asap Exercise 7-10 (Algo) Customer Profitability Analysis (L07-3, L07-4, LO7-5) Worley Company buys surgical supplies from a variety of manufacturers and

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Exercise 7-10 (Algo) Customer Profitability Analysis (L07-3, L07-4, LO7-5) Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies. For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit However , in the face of declining profits, Worley decided to implement on activity based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries Number of deliveries) $ 630,000 7,000 deliveries Manual order processing Number of manual orders 365,000 5.000 order Electronic order processing Number of electronic order) 208,000 13,000 order Line Item picking (Number of line items picked) 902,000 440,000 in tend Other organization sustaining costs (None) 680,000 Total selling and administrative expenses $ 2,785,000 Worley gathered the data below for two of the many hospitals that it serves-- University and Memorial (each hospital purchased medical supplies that had cost Worley $38,000 to buy from manufacturers) Activity Activity Measure University Memorial Number of deliveries 14 28 Number of manual orders 0 42 Number of electronic orders 16 180 Number of line items picked 220 0 Required: 1. Compute the total revenue that Worley would receive from University and Memorial 2. Compute the activity rate for each activity cost pool. 2 the rent AR Rahma Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (each hospital purchased medical supplies that had cost Worley $38,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 14 28 0 42 0 180 220 16 Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $38,000 cost of goods sold that Wor incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial Total Revenue University Memorial Required 2 > E Do not overlook the $38,000 cos Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity Rate per delivery per manual order per electronic order per line item picked be assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $38,000 cos incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial. Total Activity Costs University Memorial the $38,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $38,000 cost of g Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your inte calculations to 2 decimal places. Round your final answers to the nearest whole number.) Customer Margin University Memorial

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